Accord Satisfaction

 Agreement for Accord and Satisfaction of an Undisputed Hospital Claim
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US-00436BG
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Description Accord Satisfaction Form

Accord and satisfaction is a method of discharging a claim whereby the parties agree to give and accept something in settlement of the claim and perform the agreement. Accord is the agreement and satisfaction is its execution or performance.

A contract is usually discharged by performance of the terms of the agreement. However, the parties may agree to a different performance. This is called an accord. When the accord is performed, this is called an accord and satisfaction. The original obligation is discharged.

In order for there to be an accord and satisfaction, there must be
(1) a bona fide dispute;
(2) an agreement to settle the dispute; and
(3) the performance of the agreement.

A settlement in which one party promises to forego an undisputed, liquidated claim in exchange for a promise to perform, or the performance of, a pre-existing duty will not be held to be enforceable by many courts, because of the absence of consideration. However, the promise to perform, or the performance of, anything slightly different from the pre-existing duty is sufficient consideration to support a promise to forego the claim. When a claim is disputed in good faith, or when an undisputed claim is unliquidated (the amount owed has not been determined), a settlement of such a claim is clearly enforceable.

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Agreement Accord Satisfaction Template Other Form Names

Accord Satisfaction Sample   Agreement Satisfaction   Agreement Satisfaction Form   Agreement Of Claim   Agreement Satisfaction Of   Sample Form Accord And Satisfaction Washington State   Accord And Satisfaction Agreement  

Undisputed Claim FAQ

Which liability is discharged accord and satisfaction?

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How does an accord and satisfaction work?

What is the procedure that a debtor and creditor may use to settle a claim by means of accord and satisfaction?

What is an accord and satisfaction and is consideration required for an accord and satisfaction to be valid?

What is an accord and satisfaction agreement?

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